Convergence in a Small Open Economy
This paper used data for the ten Canadian provinces to determine whether there was convergence of regional disparities during the 1961-99 period. The results show mixed evidence on convergence. There was convergence of nominal output, but no convergence of real output, per capita or per worker. During the 1984-99 period, there was no convergence of output, per capita or per worker, in nominal and in real terms. However, there was convergence of personal income per capita over the entire period and for the two sub-periods. Government transfers to persons increased the speed of convergence of personal income per capita.